China Warns SCO of Looming External Threats : A Veiled Swipe at US

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Mayur Joshi
Mayur Joshihttp://www.mayurjoshi.com
Mayur Joshi is a prominent forensic accounting evangelist based in Pune, India. As a contributing editor to Regtechtimes, he is recognized for his insightful reporting and analysis on financial crimes, particularly in the realms of espionage and sanctions. Mayur's expertise extends globally, with a notable focus on the sanctions imposed by OFAC, as well as those from the US, UK, and Australia. He has authored seven books on financial crimes and compliance, solidifying his reputation as a thought leader in the industry. One of his significant contributions is designing India's first certification program in Anti-Money Laundering, highlighting his commitment to enhancing AML practices. His book on global sanctions further underscores his deep knowledge and influence in the field of regtech.

The annual summit of the Shanghai Cooperation Organisation in Kazakhstan became a platform for Chinese President Xi Jinping to issue a significant and pointed message. Addressing the assembled regional leaders, Xi called for unity among SCO members to resist “external interference,” a veiled reference to the mounting pressures from the United States and its allies. His remarks highlighted the evolving geopolitical landscape, where the SCO Summit, a regional economic and security bloc largely driven by China and Russia, plays an increasingly pivotal role.

The SCO Summit’s Context

The SCO summit in Kazakhstan marked an important gathering of leaders from across Eurasia. The bloc, initially founded in 2001 with six members, has expanded its membership and influence over the past two decades. It now includes ten full members, including India and Pakistan, and more recently, Iran and Belarus. This expansion reflects the SCO’s growing significance in global affairs, both economically and strategically.

As the leaders convened, the backdrop was one of rising geopolitical tensions, particularly between the U.S. and the SCO’s leading members, China and Russia. These tensions have been exacerbated by ongoing conflicts and competing interests in various regions, including Eastern Europe, the Middle East, and the Indo-Pacific.

Xi’s Call for Unity

In his address, Xi Jinping emphasized the need for unity and mutual support among SCO members. “We must consolidate the forces of unity and join hands in resisting external interference. We must firmly support each other and handle our internal differences in a spirit of peace and harmony,” he stated, as reported by Chinese state broadcaster CCTV. This call to action was a clear signal to the United States and its allies that the SCO would not succumb to external pressures.

Xi’s remarks underscored a broader strategy of positioning the SCO as a counterbalance to U.S. influence. By urging members to resist “external interference,” Xi was advocating for a more independent and cohesive bloc capable of defending its interests against what he perceives as Western encroachments.

Strengthening China-Russia Ties

On the sidelines of the summit, Xi met with Russian President Vladimir Putin for their fifth meeting of the year. The meeting underscored the deepening ties between China and Russia, particularly in the face of Western sanctions and diplomatic isolation. Putin, increasingly isolated by the West following his invasion of Ukraine, lauded the “golden era of ties between China and Russia.” He emphasized the relationship’s foundation on “principles of equality, mutual benefit, and respect for each other’s sovereignty,” according to Russian news agency TASS.

The close relationship between China and Russia is a cornerstone of the SCO’s unity. Both countries share a common interest in challenging the U.S.-led international order and creating a multipolar world. Their cooperation within the SCO is not only a strategic necessity but also a demonstration of their commitment to this shared vision.

Addressing the Cold War Mindset

Xi’s remarks included veiled criticisms of the U.S., warning of “threats, risks, and challenges” stemming from a “cold war mindset.” He called on SCO members to “safeguard the security baseline, preserve the right to development, and consolidate solidarity.” This rhetoric reflects Beijing’s ongoing strategy to position itself as a counterbalance to U.S. influence.

By invoking the “cold war mindset,” Xi was referencing the U.S.’s strategic posture of containment and confrontation towards China and Russia. This narrative serves to rally SCO members around the idea that their collective security and prosperity depend on resisting such external pressures.

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Economic and Scientific Cooperation

Beyond security, Xi pledged to bolster economic and scientific cooperation among SCO members. He urged support for innovation, maintaining stable supply chains, boosting regional growth, and promoting the realisation of common development goals. Currently, SCO members represent over 40% of the world’s population and approximately 20% of global GDP, a figure expected to grow further due to China and India’s economic contributions.

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Xi’s emphasis on economic and scientific cooperation is part of a broader strategy to enhance the bloc’s self-reliance and reduce dependence on Western technologies and markets. By fostering innovation and stable supply chains within the organisation, Xi aims to build a resilient economic network that can withstand external shocks and sanctions.

Expanding Membership and Influence

The SCO, founded in 2001 with six original members, has since expanded to include 10 full members, including India and Pakistan. The recent addition of Iran and Belarus, confirmed at this year’s summit, has heightened suspicions among the U.S. and its allies about the bloc’s potential anti-Western stance. Indian Prime Minister Narendra Modi was notably absent from the summit, represented instead by Foreign Minister Subrahmanyam Jaishankar.

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The inclusion of Iran and Belarus has significant geopolitical implications. Both countries are strategically located and have complex relationships with the West. Iran, in particular, has been a focal point of U.S. sanctions and diplomatic efforts to curb its nuclear ambitions. Its membership in the SCO signals a move towards greater integration with Eurasian powers and a potential shift in regional dynamics.

The SCO’s Evolution

Li Lifan, deputy head of the SCO center at the Shanghai Academy of Social Sciences, dismissed Western perceptions of the SCO as an “anti-Western” entity, noting that such narratives have persisted since the organization’s inception. Li emphasized the bloc’s diverse functions, encompassing politics, economy, security, and culture, and pointed out the lengthy process for achieving full membership, as evidenced by Iran’s prolonged journey due to nuclear issues.

“The SCO’s position and goals are distinctly different from those of political and military organisations such as NATO. The nature of its functions was, from the beginning, very different,” said Zhu Yongbiao, a professor at the School of Politics and International Relations at Lanzhou University. Zhu highlighted that the SCO’s primary focus is on regional stability and development rather than military alliances.

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Despite pressure from Washington, Zhu believes the SCO will persist in expanding and evolving. “The SCO needs to expand, because, in the process of expansion, the SCO has developed and grown,” he said. This ongoing growth is seen as vital for addressing the bloc’s internal challenges and enhancing its global influence.

As the SCO continues to expand and solidify its role in regional security and economic cooperation, its dynamics with the U.S. and other global powers will remain a critical aspect of international relations. The inclusion of new members and the strengthening of existing ties within the bloc are likely to shift the balance of power in the region, creating new opportunities and challenges for all parties involved.

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